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Radhe Radhe

This document is a project work proposal by Shyam Sundar Chaudhary analyzing the financial performance of Standard Chartered Bank Nepal Limited. It outlines the background, objectives, methodology, and limitations of the study, focusing on the bank's profitability, liquidity, and operational efficiency over different time periods. The study aims to provide insights into the bank's financial strengths and weaknesses to enhance its future performance.

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shyamsundarchy38
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29 views

Radhe Radhe

This document is a project work proposal by Shyam Sundar Chaudhary analyzing the financial performance of Standard Chartered Bank Nepal Limited. It outlines the background, objectives, methodology, and limitations of the study, focusing on the bank's profitability, liquidity, and operational efficiency over different time periods. The study aims to provide insights into the bank's financial strengths and weaknesses to enhance its future performance.

Uploaded by

shyamsundarchy38
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 9

FINANCIAL PERFORMANCE ANALYSI S OF

STANDARD CHARTERED BANK NEPAL


LIMITED

A Project Work Proposal

Submitted By:

Shyam Sundar Chaudhary


T.U Registration No: 7-2-39-1056-2020

College Shanker Dev Campus

Group : Accounting

Submitted To:
The Faculty of Management

Tribhuvan University

Kathmandu

In Partial Fulfillment of Requirement for the Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Putalisadak

March, 2025
1.1 Background of the Study
The financial stability of a firm is associated with its ability to
generate profit, increase the value of invested capital and at the
same time repay its short- and long-term liabilities.

Assessment of financial performance is primarily based


on various methods of financial analysis. Financial analysis is a
structural and logical way to present and analyse overall financial
information of a financial institution.

Performance evaluation is the important approach for enterprises


to give incentive and restraint to their operators and it is an
important channel for enterprise stakeholders to get performance
information.

The performance evaluation of a commercial bank is


usually related to how well the bank can use its assets,
shareholders’ equities and liabilities, revenues and
manage expenses. In the practice of financial analysis,
financial ratios are mainly used for their simplicity and
additional information value. Financial ratios are the most
popular and most widely used methods of financial
analysis als o because they can be used as input data
of m ore comp lex mathematical models.

1
1.2 Profile of Standard Chartered Bank Nepal
Standard Chartered Bank Nepal Limited has been in
operation in Nepal since 1987 when it was initially
registered as a joint-venture operation. Today, the Bank is an
integral part of Standard Chartered Group having an ownership
of 70.21% in the company with 29.79% shares owned by the
Nepalese public. The Bank enjoys the status of the only
international bank currently operating in Nepal. It is also
the only Bank in Nepal accredited with ICRANP-IR
AAA rating by ICRA Nepal as the safest bank regarding
timely servicing of financial obligations.

1.3 Statement of Problem


Financial statem ent analysis can be an especially us
efu l tool for understanding a firm’s performance and co
nditions. However, there are certain problems and issues met in
suchanalysis which call for care, circumspection and judgement.

In Nepal, the profitability rate, operating expenses and


dividend distribution rate among the shareholders have
been found different in the financial performance of the
bank in different periods of time. The problem of the study will
ultimately find out the reasons for difference in financial
performance. A comparative analysis of the financial
performance of the bank over different time periods would be

2
highly beneficial for pointing out its strengths and weaknesses.
although commercial banks are considered efficient, how far are
they efficient? This question does arise in the banking sector.
At present we have twenty commercial banks. Despite rapid
growth, some indicators show performance is not much
encouraging towards the service coverage. In such a situation,
this study tries to analyse the present performance of the bank,
which would give the answers to following queries:

a) What is the comparative liquidity, profitability and activity


ratio of the bank over different time periods?
b) Is the trend of different ratios of the bank satisfactory over
different time periods?

1.4 Objectives
PRIMARY OBJECTIVE:
To analyse the financial performance with reference to Standard
Chartered Bank Nepal ltd. To evaluate the financial position in
terms of profitability, activity, and earnings ratios.

1.5 Rationale
Report writing is very signifi cant to students as it
helps to broaden their mind by studying directly without
another proper guide. The case of the study is related to
financial performance of Standard Chartered bank Nepal ltd. Th
3
e analysis will be helpful to know thefinancial strength of the
bank. It is hoped that the study will help to improve the
performance of the bank in future. Lastly, it becomes the most
suitable literature for future study.

1.6 Review
A comparative study of financial performance is a basic process,
which provides information
on profitability, liquidity position, earning capacity, efficiency in
operation, sources and use of capital, financial achievement and
status of the companies. This information will help to determine
the extent of efficiency and effectiveness of the company
in respect of deploying financial resources in the profitable
manner

1.7 Research Methods


1.7.1 Research Design
Research design is the task of defining the research problem. In
other words, "A research design is the arrangement of
conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose
with economy in procedure. In fact, the research design is
the conceptual structure within which the research is

4
conducted. General objective of this research is to examine
and evaluate the financial performance of joint venture
bank especially that of Standard Chartered Bank Nepal.

1.7.2 Population and Sample


The population for this study comprises of 20 ‘A’ class
commercial banks currently operating in the country.
The sample consists of one judgmentally selected
bank- Standard Chartered Bank Nepal ltd. The bank's 700,000
users are equivalent to 14% of the bankable population.

1.7.3 Sources of Data


The present study is based on secondary data. The
necessary data is obtained from published Annual report
containing Statement Of financial position, Statement of
Comprehensive Income and other related statements of the bank.
Likewise, other relevant information’s are also obtained from
various sources such as various publications, business magazines,
journals and newspaper. According to the need and
objectives, secondary data are compiled, processed and
tabulated in time series. In order to judge the reliability of data
provided by the bank and other sources they were complied with
the annual reports of the bank. The data used in this study is
mainly based on the annual reports of Standard Chartered Bank
Nepal ltd.

5
1.7.4 Data Collection Strategy
The study is based on secondary data from the annual
financial report of SCBNL. It relies on both published and
unpublished reports that relate to this study. The conclusion
is based on the financial statement of SCBNL.

1.7.5 Tools of Data Analysis


Data Analysis tools are those that are used for the analysis
and interpretation of financial data. These tools are fruitful
in exploring the strengths and weaknesses of financial
policies and strategies.

1.8 Limitations of the Study


The major limitations of the study are as follows:
a. Limited variables have been selected.
b. This Study is based on secondary data only. It ignores the
qualitative aspects.
c.Only selected financial and statistical tools
and techniques have been used.

1.9 Organization of the Study


The present study is organized into three chapters. They are
listed below:

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Chapter-I: Introduction
The first chapter will include background, the profile of the
organization, objectives, rationale, review of literature, research
methodology, limitations, and organization of the study.

Chapter II: Data presentation and analysis


The second chapter will include data presentation tools, data
analysis tools, and results and findings.

Chapter III: Summary, Conclusion, and Recommendations


The third chapter will include a summary and conclusion.

7
BIBLIOGRAPHY

Bhole, L., & Mahakud, J. (2009). Financial Institutions and


Markets (5th edition).New Delhi, India: Tata McGraw Hill.

Fabozzi, F., & Modigliani, F. (2013). Foundation of Financial


Market and Institutions(4thedition). New Delhi, India: Pearson
New International

Weston, J. F., & Brigham, Eugene F. (1972). Managerial


Finance, New York, Holt Saunders, International Editions.

Saunders, A., & Cornett, M.M. (2019). Financial Markets and


Institutions (7 th edition). NewYork, USA: McGraw Hill.

Adhikari, D. R & Pandey, D.L. (2012). Business research methods.


Kathmandu: Asmita Books Publishers.

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